Discussion
Will the vat increase massively affect people, when it went down in 2009 people were going on saying it not going to make a difference now its going up people are going on like its will be devestating. The increaes will mean in every £100 £2.50 will be added on hardly braking the bank. My next door neighbour who works in currys and was saying it was mad in the shop today people buy t.v and so on, like the prices will double in a day rediculuis.
Edited by MG CHRIS on Monday 3rd January 19:26
cuprabob said:
XitUp said:
How much does he think a vegetable rogan josh with garlic rice will go up by?
you only pay vat if you sit in. It's vat free if it's take awayOP, if you can ask your mate before then and get back to me I would be really appreciative.
CaptainSlow said:
In reality seller will absorb an element of the tax increase, so will be less than that.
Plenty will, since it's supposed to be a temporary increase, take the chance to make themselves look good and absorb it all. Also saves changing every single price in the company's catalogue, whoever they may be.It's those adverts saying "Beat the VAT increase!" and "We're holding the lower VAT rate until the end of January!" that really make me laugh.. If they advertised a 2.13% sale, would anyone give a s
t?CaptainSlow said:
In reality seller will absorb an element of the tax increase, so will be less than that.
The cynic in me would say that many retailers have already been increasing prices in the last couple of months, so that they can say "We're not passing on the VAT increase to our customers," when in reality they have already increased prices by more than enough to offset the VAT 'discount' they are giving to customers.Ho wmuch did we all notice when:
a) It went from 17.5% - 15%?
and
b) When it went from 15% back up to 17.5%?
Not much I expect. Although used car margins just got noticeably tighter in the immediate sense. It's not like traders can inflate the retail prices of stock already held to compensate for it. But it does mean trade values could take a dip to increase the subsequent gross margin to compensate.
7/47 of gross margin > 3 /23 > 7/47 again > now 1/6 of gross margin. Or per £1,000 of markup, £148.94 > £130.43 > £148.94 > £166.67, which does make a noticeable difference over a year's trading of a few hundred cars for a typical small trader/dealer.
Averaged out over the four years = £148.75, so in the big scheme of things it's done bugger all but alter cashflow. Just depends how many more rises are in the pipelines I guess. It's another small pinch, they'll keep doing it until people say "enough" IMO.
a) It went from 17.5% - 15%?
and
b) When it went from 15% back up to 17.5%?
Not much I expect. Although used car margins just got noticeably tighter in the immediate sense. It's not like traders can inflate the retail prices of stock already held to compensate for it. But it does mean trade values could take a dip to increase the subsequent gross margin to compensate.
7/47 of gross margin > 3 /23 > 7/47 again > now 1/6 of gross margin. Or per £1,000 of markup, £148.94 > £130.43 > £148.94 > £166.67, which does make a noticeable difference over a year's trading of a few hundred cars for a typical small trader/dealer.
Averaged out over the four years = £148.75, so in the big scheme of things it's done bugger all but alter cashflow. Just depends how many more rises are in the pipelines I guess. It's another small pinch, they'll keep doing it until people say "enough" IMO.
Cost Captain said:
AlpineWhite said:
MG CHRIS said:
The increaes will mean in every £100 £2.50 will be added on
Another £2.50 on every £117.50, isn't it?
MG CHRIS said:
Will the vat increase massively affect people, when it went down in 2009 people were going on saying it not going to make a difference now its going up people are going on like its will be devestating. The increaes will mean in every £100 £2.50 will be added on hardly braking the bank. My next door neighbour who works in currys and was saying it was mad in the shop today people buy t.v and so on, like the prices will double in a day rediculuis.
Unfortunately most of Joe public are extremely stupid, hence panic buying of stuff as they haven't taken the time to do some research. I guess this is why the ad campaigns have made such a fuss of it as it works!Edited by MG CHRIS on Monday 3rd January 19:26
For 90% of everyday purchases though it won't make much difference at all. If spending £100 then an extra £2.50 isn't going to instigate some massive decision making process with the wife etc. so doubt it will stop people buying an iPod. It might make people think twice about cars though as another 2.5% on £30k will be significant.
I think it's going to irritate the motorist most as fuel is going to rise yet again. I do about 20k miles a year so am going to feel it. As per the last VAT rate change I very much doubt that the government is going to drop the cost of fuel accordingly so will undoubtedly annoy somewhat.
McSam said:
CaptainSlow said:
In reality seller will absorb an element of the tax increase, so will be less than that.
Plenty will, since it's supposed to be a temporary increase, take the chance to make themselves look good and absorb it all. Also saves changing every single price in the company's catalogue, whoever they may be.It's those adverts saying "Beat the VAT increase!" and "We're holding the lower VAT rate until the end of January!" that really make me laugh.. If they advertised a 2.13% sale, would anyone give a s
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